Reverse auction

Contract auctions or craft auctions, depending on the type and service auctions are usually a web-based assignment form. At the appropriate job exchanges the initiative is taken instead from the vendor or supplier by the purchaser. The allocation method used is a reverse auction where mostly a maximum price is set and the bids may only lie below this value. In contrast to conventional Submission procedure, bidders know the height of this Bid, they can reduce their bid because of this.

Expiration

The contracting authority shall specify its needs in input masks at a market order a, in addition its maximum price and loads supplementary documents high. Subsequently, the service provider give their bids. Then the principal can partially decide (depending on award procedures ), which contractor he wants to select the best contractor or automatically awarded the contract. Here, then mix some characteristic features of the auction and tender. After a successfully completed transaction, both parties will mutually valued.

Benefits of job exchanges

By pooling order data within the job markets, the transaction costs are reduced for both the contractor and the client. After a lengthy search of service providers or jobs eliminated. In addition, the merging of the order data increases the competition, thus ensuring the clients and contractors a transparent price discovery process. Since both the client and contractor contact only through a contract market, the necessary contacts are massively reduced. In addition, the contractor must submit any unnecessary offers more when about the price expectations of the client deviate far from the realistic cost of the order. The corresponding advantages realized thereby taking into account the network effects, and are therefore only with high user numbers in the order exchanges realized.

As will be paid for services normally only after service has been provided, no trustee service like ebay the risk from a financial perspective is necessary, thus lower than when shopping on the Internet.

Criticism of job exchanges

Since some service auction sites always wins the cheapest supplier, this is often criticized vehemently by service providers. Prices are falling partly from the extent that one can explain this only with the hope of repeat business, says part of the service. On the other hand, previous price fixing of principal and agent could be an explanation. Both agree before the end of the offer period on a price and the contractor provides extremely low prices in order to reduce the fees to the provider of the contractor and also to obtain the contract as a result of the procurement procedure. Some manufacturers have reacted to this fact and do not charge commissions on the auctioned work more. In addition, the argument of undeclared work in the field of job markets is often cited as a point of criticism. However, in most sites of this type sign with business license is needed, and the market leader now require a monthly fee for all service providers, which virtually means the end for private casual workers.

Situation in Germany

The first online auction house for manufacturing and service companies that has gone into Germany with this business concept online, was Yellout in April 2000 ( Insolvent 2001). This was followed by Under tool in October 2003, smart order, LetsWorkIt, Jobdoo and blauarbeit in 2004. With great expense My- Hammer moved to in May 2005. My- Hammer is among the auction markets for crafts and services market leader, followed by blue work PROFESSIONALS (never 14 February 2008), Quotatis (formerly LetsWorkIt ) WORK5 and Jobdoo (August 2007). Reason for this may, inter alia, be the advertising presence of My- Hammer on German television. However, this also shows how high the potential of this type of auction is rated at the companies involved.

Since 2006, the growing interest in this segment not only among users of these auction sites. In spring 2006, it was announced that the publishing group Georg von Holtzbrinck (Handelsblatt, Business Week, etc.) has been involved in My hammer with 31.25%. The French leader Quotatis the company has completely taken over and is planning Letsworkit the European market with its portals in this segment to use. Similarly, the yellow pages publisher rose in March 2007 - Euro Serve Media with a 7 -digit investment in a blue work to accelerate strategic growth in this booming market.

The trend of the auction houses shows that they are adopted with increased popularity and the quality of service increases, as evidenced by the number of positive reviews.

Situation in Austria

The market in Austria seems to develop only since the year 2007. In Austria there since the beginning of 2007 an Austrian provider of edagobert under the name of the domain www.edagobert.com operates. In addition, the auction numbers of www.my- hammer.at dynamic development since early 2008. In addition, there since June 2008, an additional supplier name Internet Tender & Auction Service has on its domain www.i- tas.at order auctions offering not only regular auctions and a social network.

Situation in Switzerland

In Switzerland, the idea was first taken up in 2003 jobwin.ch of the platform, which is indeed still online, but has no significant activities more. Followed in 2005 by the now set platform my- works.ch.

In April 2007, the Platform launched renovero.ch, the service range is limited to the craft and the possibilities for offers and awarding process claims to have been adapted to the context of the Swiss market.

The end of 2007 launched the platform gango.ch which offers a geo - localized, global marketplace for local services according to its own description.

Another provider is Expertado.ch that since 2007 claims to all services and craft work under this Contract Tender. Effective but are also part of almost all published orders the categories of crafts, parade, or cleaning services.

With ofri.ch a new tendering platform was launched in 2009 that is focused as its competitors in the areas of crafts, parade or cleaning.

Restarted Also in 2009, the provider is bobit.ch. Again, a tendering platform for various craft and service categories will be offered.

With swissoffer.ch another platform was launched in 2011. It differs from the other platforms in the sense that the number of suppliers is limited, so that keeps the price war in the frame. The platform operates in the service as well as in the craft sector.